Author Archives: Russ

Where There’s Smoke…

Posted on July 12, 2015 by Russ

Martin Olive operates “The Vapor Room,” a medical marijuana dispensary in San Francisco. His business, a sole proprietorship, was audited by the IRS for 2004 and 2005. He lost. He took that case to Tax Court. Back in August 2012 … Continue reading →

Posted in Tax Court | Tagged | 1 Comment

The Operation Was a Success, but the Patient Died

Posted on July 7, 2015 by Russ

No, I’m not veering into medicine today. The title of this post is a homage to the title of a chapter in a book by the late Fred Karpin. Mr. Karpin was writing about doing everything right, but still having … Continue reading →

Posted in Tax Court | Tagged | Comments Off on The Operation Was a Success, but the Patient Died

State Financial Health: Alaska, Dakotas on Top, Illinois, New Jersey, Massachusetts and Connecticut on the Bottom

Posted on July 7, 2015 by Russ

The Mercatus Center at George Mason University released a study today ranking the 50 states on their financial health. Here are the top six states: 1. Alaska (8.26) 2. North Dakota (2.97) 3. South Dakota (2.84) 4. Nebraska (2.75) 5. … Continue reading →

Posted in Alaska, California, Connecticut, Illinois, Massachusetts, New Jersey, North Dakota, South Dakota | Comments Off on State Financial Health: Alaska, Dakotas on Top, Illinois, New Jersey, Massachusetts and Connecticut on the Bottom

State Taxes Matter, Lesson #21

Posted on July 5, 2015 by Russ

When does $108 million equal $80 million? When you’re leaving California and heading to Texas. DeAndre Jordan has been playing center for the Los Angeles Clippers of the National Basketball Association. Mr. Jordan just signed a free agent deal with … Continue reading →

Posted in California, Oregon, Texas | 1 Comment

Mr. Hyatt Goes to Washington…Again

Posted on June 30, 2015 by Russ

The saga of Gilbert Hyatt and the Franchise Tax Board, California’s income tax agency, continues. As you may remember, the Nevada Supreme Court ruled last September that the FTB committed fraud against Mr. Hyatt (false representation and intentional infliction of … Continue reading →

Posted in California, Supreme Court | Tagged | 1 Comment

Does a Nonresident Alien Spouse that Has Elected to be Treated as a US Person Need to File an FBAR?

Posted on June 29, 2015 by Russ

With the FBAR deadline upon us, an interesting question arose: Does a spouse covered by the §1.6013-6 regulation allowing a nonresident alien individual to be treated as a resident need to file an FBAR? Logic says no; the FBAR comes … Continue reading →

Posted in FINCEN, International | Tagged | 1 Comment

A Peabody, Massachusetts Tax Preparer Gives an Unwitting Endorsement for EFTPS

Posted on June 28, 2015 by Russ

Barry Ginsberg operated a payroll tax service in Peabody, Massachusetts (near Boston). He endorsed escrow accounts for his clients; they would send him the money for the payroll taxes and he, in turn, would pay them. Since I’m writing about … Continue reading →

Posted in Payroll Taxes, Tax Fraud | 1 Comment

You Can Pay Employees in Cash, But…

Posted on June 28, 2015 by Russ

…you’d better withhold payroll taxes. One Milwaukee restaurant owner is alleged to have forgotten that minor detail. He also allegedly didn’t include all of his cash receipts on his tax returns. Paul Bouraxis operates three Milwaukee-area restaurants. Judging from his … Continue reading →

Posted in Tax Evasion, Wisconsin | Comments Off on You Can Pay Employees in Cash, But…

BEA-10 Due on June 30th

Posted on June 24, 2015 by Russ

Just a reminder this morning that the BEA-10 mandatory survey of foreign investment by Americans is due on June 30th. If you own 10% or more of a foreign entity, you will need to file this form. New filers must … Continue reading →

Posted in BEA, International | Comments Off on BEA-10 Due on June 30th

FBAR Due in One Week

Posted on June 23, 2015 by Russ

The Report of Foreign Bank and Financial Accounts (Form 114, the FBAR) is due on June 30th. The form must be electronically filed with FINCEN. Your tax professional may be able to do it through his software (we can) or … Continue reading →

Posted in Gambling, International | Tagged | 1 Comment